Ethereum Price Alert: Is a $2,400 Plunge Next for ETH?

Ethereum's chart is flashing a warning sign that could send shockwaves through the crypto market.

The second-largest cryptocurrency by market cap faces a critical technical test. A key support level is under threat, and if it fails to hold, analysts are eyeing a potential descent towards the $2,400 zone—a level not seen for months.

The Technical Breakdown

Market momentum has shifted bearish. The recent price action suggests buyers are stepping back, leaving ETH vulnerable to a sharper correction. Trading volume patterns and on-chain data point to weakening conviction among holders.

What's Driving the Pressure?

A confluence of macro headwinds and sector-specific fatigue is at play. Broader risk-off sentiment is seeping from traditional markets—where, let's be honest, the only thing more volatile than stocks lately has been a central banker's promise. Network activity metrics and shifting DeFi yields are also contributing to the cautious outlook.

The next few trading sessions are crucial. A break below immediate support could trigger automated sell-offs and a rapid move toward that $2,400 target. For the bulls, it's time to defend the line or prepare for a deeper, more painful dip.

Ethereum Faces Bearish Flag Risk

The ethereum price is currently displaying some weakness in the technicals, which is taking the shape of a bear flag, as highlighted by a crypto analyst, Ali Marteniz, in a recent posting. If the pattern confirms, ETH could see its next downside move toward the $2,400 level.

Bullish Structure Forms as Whales Accumulate

Ethereum is forming a cup and handle pattern. Such a pattern is common before a trend reversal. The cup, which is rounded, developed after the trough in mid-November. The recent correction is the handle. The neckline slopes downward slightly, yet the pattern remains technically valid.

As Ethereum started trending out of the handle, whales made their presence felt. Between December 11th and December 12th, the whale supply rose from 100.41 million ETH to 100.50 million ETH. This is an increase of 90,000 ETH. In current prices, this accumulation is worth approximately $293 million.

Ethereum needs a daily close above $3,486, which marks the neckline. This breakout has a measured target of $4,779. This corresponds to a potential 37% increase from the neckline.

The interim resistance is at $3,712 and $4,249. The support is marked at $3,152. On the upside, weakness emerges below $3,152. Breaking below $2,620 withdraws the trade idea. Currently, the trade bias is slightly positive. The whales are buying. The trade formation is intact.